BSkyB grants Microsoft temporary use of SkyDrive name in trademark dispute, allows it time to rebrand cloud service

BSkyB may have won the trademark case against Microsoft's SkyDrive cloud service, but there won't be any renaming going on just yet. Today, the British satellite TV provider has announced that it's reached an agreement with Redmond, allowing the software giant to temporarily continue using the name SkyDrive while it handles the transition to a new brand. The arrangement, which includes an undisclosed financial settlement, also means Microsoft won't appeal against the ruling. For now though, you'll just have to find your own way to tell the services apart, until Microsoft figures out what to call its cloud offering going forward.

Sky allows Microsoft temporary use of SkyDrive name during transition period following trade mark infringement judgement - while Microsoft agree to forego planned appeal

British Sky Broadcasting Group plc ("Sky") and Microsoft Corporation ("Microsoft") have today announced the settlement of trade mark infringement proceedings in the European Union brought by Sky against Microsoft in the English High Court. The settlement of this case reflects the desire of both companies to focus on joint projects to benefit their customers.

In June, High Court Judge Mrs Justice Asplin issued a judgment holding that Microsoft's use of the name SkyDrive infringed Sky's rights in the 'Sky' mark.

According to the settlement, Microsoft will not pursue its planned appeal of this decision and Sky will allow Microsoft to continue using the SkyDrive name for a reasonable period of time to allow for an orderly transition to a new brand. The agreement also contains financial and other terms, the details of which are confidential.

"We are pleased to have reached a settlement after Microsoft agreed not to appeal the trade mark infringement judgment in relation to its SkyDrive service," said Sky. "We will remain vigilant in protecting the Sky brand and will continue to take appropriate action against those companies who seek to use our trade mark without consent."

Microsoft said, "We're glad to have resolution of this naming dispute, and will continue to deliver the great service our hundreds of millions of customers expect, providing the best way to always have your files with you."